Nexans S.A.

Nexans reported H1 2026 standard sales of EUR 3.249 billion, up 5% year over year and 1.5% organically. Adjusted EBITDA was EUR 388 million, up 4.3% from EUR 372 million in H1 2025 restated for IFRS 5, with an EBITDA margin of 11.9% of standard sales. By segment, PWR-Transmission sales were EUR 777 million with adjusted EBITDA of EUR 107 million and a 13.7% margin; PWR-Grid sales were EUR 702 million with adjusted EBITDA of EUR 108 million and a 15.4% margin; PWR-Connect sales were nearly EUR 1.4 billion with adjusted EBITDA of EUR 162 million and an 11.8% margin. Free cash flow was EUR 165 million and cash conversion was 42.7%; leverage was 1.4x and liquidity was around EUR 2.5 billion. For full-year 2026, management guided to adjusted EBITDA of EUR 770 million to EUR 840 million and free cash flow of EUR 235 million to EUR 325 million, including Republic Wire from June 1 but excluding any further acquisitions.

Julien Hueber framed the quarter as evidence that Nexans’ “profitable growth” strategy is working and said the company is becoming a full-fledged electrification pure play after the Autoelectric divestment. He emphasized that demand is structurally strong in grid modernization, subsea interconnections, data centers, battery storage, and solar, and said the company is investing to capture that growth. His tone was confident but measured, repeatedly noting discipline, operational excellence, and prudence around geopolitics and guidance.

Vincent Piquet focused on the bridge from EUR 3.093 billion in H1 2025 to EUR 3.249 billion in H1 2026, with organic growth of 1.5%, scope contribution of 3.8%, and FX of negative 0.3%. He highlighted adjusted EBITDA of EUR 388 million versus EUR 372 million restated last year, the EUR 165 million of free cash flow, 42.7% cash conversion, and leverage of 1.4x. He also pointed to liquidity of around EUR 2.5 billion, average cost of debt of around 4.1%, and said H2 depreciation should be lower than H1 because of specific items.

Analysts focused on whether H2 should still be stronger than H1, the size and timing of the new Mediterranean MI transmission project, Connect margin mix, Nordic weakness, and how Republic Wire would contribute to U.S. medium-voltage growth. Management said H1 was stronger than initially expected, that the full-year guidance increase reflects both Republic Wire and stronger underlying H1/H2 outlook, and that the MI line is not yet in backlog but the new project should use capacity for 18 months once awarded. On Connect, they said the Nordic recovery is only starting, Italy is still below average margin, and management expects margins to keep improving as acquisitions are transformed and more innovation-driven verticals are added.